Relief u/s 89(1) for performance related pay .
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 October 2014
I am working in a PSU owned by Govt.of India . I have received performance related pay for the year 2013-14 in subsequent year i.e in 14-15. I am claiming relief u/s 89( 1) as my contention is that it is nothing but profit in lieu of salary and it accrued to me in the year 2013-14 itself. In 2013-14 my tax rate is 20% whereas in 14-15 it is 30%.
The company contention is that Performance related pay is in the nature of Bonus and it is taxable in the year of receipt i.e 2014-15 even though relating to earlier year 13-14. Hence no relief will be available u/s 89(1).
Please give me any specific case law and relevant section which can be referred in this case .
The company contention is that Performance related pay is in the nature of Bonus and it is taxable in the year of receipt i.e 2014-15 even though relating to earlier year 13-14. Hence no relief will be available u/s 89(1).
Please give me any specific case law and relevant section which can be referred in this case .
17 October 2014
IT IS IN NATURE OF PROFITS IN LIEU OF SALARY U R ELIGIBLE FOR RELIEF
CA MANOJ GUPTA
JODHPUR
09828510543
CA MANOJ GUPTA
JODHPUR
09828510543
17 October 2014
The contention of the company is right it is not an arrear of salary it is only a bonus which is determined in the next year based on the performance of the company.
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